There are many different types of accounting business insurance. If you are unsure as to which you might need, here is a brief introduction to some of the most common forms of this professional protection.
Large Firm Insurance
A large firm, or a company that takes in tens of millions of dollars per year, requires a complex web of professional safeguards to match its expansive risk potential. To this end, policies for large firms often include coverage for nearly every accounting practice imaginable:
- Tax preparation
- General bookkeeping
Firms with lower revenue might still offer a variety of services for their clients. Therefore, it stands to reason that the primary distinction between small and large accounting business insurance is the accessibility factor. When small companies are able to get a world-class insurance product to protect their operations and reputations, they often experience the steady growth characteristic of success in the industry. If you are operating a small firm, look for the simple solutions and reasonable coverage plans characteristic of good small and medium accounting insurance policies.
Prior Acts Insurance
This specific type of accounting business insurance is most often used during complex legal procedures, specifically mergers, corporate purchases and company spin-offs. If your firm is changing ownership or organizational status, you might need coverage that extends back a certain amount of time. Look for a long maximum reporting period when considering this type of insurance.